All Forum Posts by: Jeff Kehl

@Joshua Howaniec you should definitely be able to get that done if it's a good deal. But I would echo the comments above that you need an experienced partner. There's some great training out there on how to syndicate and most of them will help out newer syndicators for a piece of the deal. I took a class from the real estate guys that was very good. Also, @Michael Blank has great content and also look into Brad Sumrok and Joe Fairless.

@Derek Kopp I moved away from Rome last month but I still own a lot of property there. Unfortunately there aren't any real steady investors groups there that I I'm aware of. There was an apartments owners group I attended a few years ago but not sure they meet any more. The closest I found was in Carteresville NGREIA. 

It's a pretty small town though and I know quite a few folks in real estate there so let me know if I can guide you to a specific type person.

@ben hudman I wouldn't use the 50% rule for commercial property. Your expenses will vary wildly based on the use. If you paid $80k and can rent it for $1700 you likely have a cash cow on your hands. Especially with a warehouse you won't have a lot of expenses. There aren't as many bathrooms, drywall, appliances, etc in a commercial property generally and if you're able, you put the maintenance on the tenant in the lease.

The downside with commercial though is that it is harder to find tenants if your not in a hot area. Sounds like you are so if it were we I would brrrr it. 

If you go 6 months without a tenant you can always list it both for rent and sale whichever comes first. That has worked pretty well for me.

@Charley C.there are at least 3 public reits that own towers that might buy it from you. American Tower, Crown Castle and Landmark Infrastructure. You can contact them from their website and might get an offer from one of them.

@Haley Sooudi I'm invested in one OZ fund as a passive investor and looking to possibly do my own. IMO it's way too early to get feedback from anyone on how they're going because they really just started. This website has the best list of funds I found https://opportunitydb.com/funds/

I'd recommend talking to some of them and seeing who you feel comfortable with.

@Michael King Can you imagine going to a Starbucks and seeing that a pipe had burst and the barista telling you that they were trying to get ahold of the landlord to fix it but he wasn't picking up? The name brands that do NNN want complete control of every aspect. If you as the landlord don't pay the taxes and they get posted by the tax authority that looks horrible to you as a business because the customers think you can't pay your bills.

@Blake Fine I actually just moved away from Rome a week ago or I would offer to sit down and discuss with you because it's hard to answer your question without knowing more about you. I can tell you for a fact you're in a great market to get started though.

If you don't have/make much money but you're at all handy you can get started by offering to help out someone doing some flips. Go down to the courthouse steps at 10 AM on the first Tuesday of the month and talk to whoever is buying.

But if you have a good job where you're making good money just live below your means for awhile and save up some money and buy a little house for buy and hold. You can still buy some reasonable houses in Rome and the rental market is very hot.

@Stephan K. I have some office space like that and live in a small town so it is by far easiest for me to use a local commercial broker. There are 3-4 in town that do most of the business so they are easy to find. I see you're in clearwater so likely a bigger area but the same principle applies.

Look at anything comparable listed on Loopnet, the mls or local brokerages and you will probably find a few brokers control most of the market. You don't necessarily have to list it with them but definitely get to know them and let them know what you have and pay them well if they bring you a tenant.

Also, another thing you can try is to back into it from the prospective tenants perspective. What kind of tenants do you see there? Lawyers? Medical? Insurance? They all have professional groups you can talk to and see if they are expanding in the area and target them directly. 

@Lynn T. As others have said, you can but there are complications. I have a great American Family agent I use from Marietta, GA that does around 100 properties for me everything from single family homes to apartment buildings and office buildings. He can walk you through various options. If you want his contact info PM me and I will send an intro email.

@John Pflederer hard to say without knowing exactly where your property is, but looking at your numbers I'd say you have a winning property but just don't know it yet. In fact, if you decide to sell, let me know and I will take a look.

To answer your 2 questions.

1) I just generally assume lower end apartments are rented by people on the edge, paycheck-to-paycheck. When the economy gets tough they get layed off. May not be the case there but generally true. I have lived in Decatur, Monticello and Champaign, IL so I'm generally familiar with central Illinois. I would disagree with your general assessment of it. The overall state has horrendous debt problems that will pass along to the residents in higher property taxes. There is no good reason for an employer to locate there and more and more they will move out of the country or south to friendlier states.

2)  I regularly pay for the rehab of new properties from the cashflow thrown off by older properties. It's a great strategy as long as you know that's what's going on. If instead you think you have a money losing property part way through and sell for a loss it is not a good strategy :)

Also, I forgot to mention in my last post, many of the comments above where people suggest you find some of your own contractors/service providers are good advice. Your PM is probably doing a good job but it's just good practice to shop your business around. If they won't do it then you should.